Futures Continue Higher After Strong Round of Earnings

US stock futures are higher this morning following Monday’s rally, boosted by a wave of strong earnings reports. Goldman Sachs (NYSE:GS) beat on EPS and revenues this morning, in addition to announcing a dividend hike from 46 cents to 50 cents. However, after a big rally into its report, the stock is basically flat despite the strong numbers.

Also in focus this morning is Citigroup (NYSE:C), as CEO Vikram Pandit announced his immediate resignation. The move comes as a surprise, and Pandit will also exit Citi’s board. Mike Corbat, formerly Citi’s CEO of Europe, Middle East, and Africa, will take over at CEO. John Havens, the CEO of Citi’s Institutional Clients Group, also resigned. C shares are down 3% on the news.

There was slew of major earnings this morning in addition to Goldman, and most of the stock are higher following their reports. UnitedHealth (NYSE:UNH) is up around 2% after third quarter profits rose 23% and the company lifted full-year earnings estimates to $5.20-5.25 from $4.90-5.

Mattel (NYSE:MAT) is up over 5% this morning after the toy maker saw growth across all segments.

Johnson and Johnson (NYSE:JNJ) is up 1% after topping consensus estimates on EPS and revenues.

Coca-Cola (NYSE:KO) is basically flat following its report, which came in marginally shy of consensus estimates.

Not all is rosy, though, as PNC Financial (NYSE:PNC) is down 1.5% following a lukewarm report.

At this point, traders are asking if that was the correction. We are not in the business of blind predictions, so we will need to measure the price action closely to get a clear picture. The encouraging sign for bulls is the the pullback held four key support levels in the S&P: 1) the 50-day MA, the prior breakout level, the 25% Fibonacci retracement and the more gradual uptrend from June 4th lows. Yesterday was considered Day #1 of a new rally attempt. Typically you would like to see a follow-through day in the next 4-7 sessions for IBD to go back into confirmed rally.

Disclosure: Scott Redler is long AAPL

About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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